Sydney unit rents decline for the first time in 14 years: Domain

Sydney unit rents decline for the first time in 14 years: Domain
Sydney unit rents decline for the first time in 14 years: Domain

Median weekly house rents in Sydney remained steady over the September quarter and year at $550 per week, according to the latest rental report from Domain

The report found, house rents have now flatlined for a year and a half while unit rents declined by 0.9% over the quarter and year - this is the first time unit rents have declined annually since records began in 2004. 

Although gross rental yields in Sydney remain low relative to the other capitals, declining property prices have seen house and unit yields experience the strongest annual improvement since 2012.

Sydney unit rents have now declined from an all time high in response to an increase in rental supply.

Domain Senior Research Analyst, Dr Nicola Powell said: "Advertised rental stock is currently at a new record high, with the growth in unit rentals hitting a pace not seen in six years. Tenants will find they have considerably more houses and units to choose from than this time last year."

Sydney unit rents decline for the first time in 14 years: Domain

If advertised stock levels continue to track higher, it should put downward pressure on rents.

Although strong levels of migration, combined with the barrier of high house prices, may help to counterbalance this.

"Current conditions however, will make landlords think twice when deciding to raise rents. It is highly likely we will see more incentives at play, with landlords keen to attract and retain good tenants," said Powell.

Tags: 
Sydney Rental market

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